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How resilient is La Réunion in terms of international tourism attractiveness: an assessment from unit root tests with structural breaks from 1981-2015

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  • Amélie Charles
  • Olivier Darné
  • Jean-François Hoarau

Abstract

Even if local policymakers increasingly claim that tourism is one of the key factors of future economic development for the French small island La Réunion, international tourist arrivals are observed to be locked in a stagnation phase since the beginning of the 2000s. Starting from this stylized fact, this article aims to study if this phenomenon results from major external events hurting this economy regularly. Next, by using univariate unit root procedures with structural breaks, we test for evidence of permanent or transitory effects of external shocks on international tourist inflows (total, by source markets, and by category) over the period 1981–2015. Finally, the empirical analysis allows us to reject the null of a unit root. Then, stagnation of tourism arrivals to La Réunion is not due to exogenous shocks but probably results from endogenous impediments within the domestic tourism industry and unsuitable public policies.

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  • Amélie Charles & Olivier Darné & Jean-François Hoarau, 2019. "How resilient is La Réunion in terms of international tourism attractiveness: an assessment from unit root tests with structural breaks from 1981-2015," Applied Economics, Taylor & Francis Journals, vol. 51(24), pages 2639-2653, May.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2639-2653
    DOI: 10.1080/00036846.2018.1558349
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    Cited by:

    1. Jean-François Hoarau, 2020. "Is international tourism responsible for the pandemic of COVID-19? A very preliminary assessment with a special focus on small islands," Economics Bulletin, AccessEcon, vol. 40(3), pages 2395-2407.
    2. Jennifer C. H. MIN & Hsien-Hung KUNG & Tsangyao CHANG, 2019. "Testing the Structural Break of Taiwan Inbound Tourism Markets," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 117-130, June.
    3. Juan Antonio Duro & Melchor Fernández-Fernández & Alejandro Pérez-Laborda & Jaume Rosselló-Nadal, 2024. "Towards a risk-adjusted tourism and travel competitiveness index," Tourism Economics, , vol. 30(4), pages 947-968, June.
    4. Jean-François Hoarau, 2020. "Is international tourism responsible for the pandemic of COVID-19? A preliminary cross-country analysis with a special focus on small islands," TEPP Working Paper 2020-04, TEPP.
    5. Jean-François Hoarau, 2022. "Is international tourism responsible for the outbreak of the COVID-19 pandemic? A cross-country analysis with a special focus on small islands," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(2), pages 493-528, May.
    6. James E Payne & Junsoo Lee, 2024. "Global perspective on the permanent or transitory nature of shocks to tourist arrivals: Evidence from new unit root tests with structural breaks and factors," Tourism Economics, , vol. 30(1), pages 67-103, February.

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